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23 February, 12:43

An instrument signed by a person who has been declared mentally incompetent by a court is:

a. unenforceable by an ordinary holder, but enforceable by an HDC.

b. enforceable by any holder, including an HDC.

c. unenforceable by any holder, including an HDC.

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  1. 23 February, 12:44
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    Answer is option c, i. e. unenforceable by any holder, including an HDC.

    Explanation:

    When any instrument is signed by a person, who has been declared mentally incompetent by a court, then such an instrument is considered void and it stands unenforceable by any holder including the holder in due course (an HDC). A mentally incompetent person does not have adequate knowledge of the activities carried by him/her and is not treated as a genuine.
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